Tokenized assets, which represent real-world financial instruments on blockchain platforms, are rapidly gaining traction among major banks, fintech companies, and crypto firms. The sector has seen significant growth over the past year, with projections suggesting it could reach a valuation of at least $2 trillion by 2035. This comes as financial institutions and consulting firms are increasingly recognizing the potential of tokenization to revolutionize traditional markets.

Major Financial Institutions Predict Explosive Growth

According to data compiled by Asset Tokenization, major financial institutions project the tokenization sector to reach at least $2 trillion by 2035. Consulting firm McKinsey has forecasted that the tokenization market could grow to $1.9 trillion by 2030 and $4 trillion by 2035. On the higher end, Standard Chartered has estimated that the market value of tokenized assets could reach $30.1 trillion by 2034. These projections are helping to boost institutional interest in the growing sector, as firms look to capitalize on the potential of tokenized assets.

Goldman Sachs, for example, has developed internal blockchain technology to support tokenized ownership of funds. In July 2025, the firm announced a public partnership with BNY Mellon to launch money market fund tokenization solutions. Other major players in the space include Citigroup, UBS, and Germany’s Deutsche Bank, all of which have taken steps to enter the tokenization market.

Tokenization Gains Momentum in Crypto and Traditional Finance

Since the start of the new year, the crypto space has seen more firms looking to move their assets on-chain. In March 2026, Binance announced that it would resume offering tokenized equities, close to five years after shelving a similar plan due to regulatory hurdles. The exchange has partnered with tokenization platform Ondo Finance to list 10 tokenized stocks, ETFs, and commodity-linked products on its Binance Alpha platform.

In the same month, Kraken launched the world’s first regulated tokenized equities perpetual futures under the xStocks framework. These developments highlight the growing interest in tokenized assets, particularly as regulatory clarity improves. Stablecoins are considered one of the main growth factors in tokenization, with the GENIUS Act further boosting the adoption of tokenization.

The crypto market structure bill, known as the CLARITY Act, is expected to provide further clarity on the regulatory landscape. One of the major challenges that tokenized assets have faced is determining whether they qualify as securities, commodities, or something else. The CLARITY Act would help determine which assets fall under the jurisdiction of the SEC and which are under the Commodity Futures Trading Commission (CFTC). This will assist companies in understanding which rules to follow before launching a product.

Fintech Firms Use Tokenization for Efficiency

Fintech firms are also embracing tokenization to enhance efficiency and reduce costs. In March 2026, SoFi partnered with Mastercard to enable SoFiUSD, a fully reserved U.S. dollar stablecoin, as a settlement option. This allows SoFi to use tokenized cash to settle card transactions on Mastercard’s global network, bypassing the need for traditional bank rails.

Revolut is also using tokenized cash rails to enable cheaper cross-border remittances. This enables users to hold interest-generating tokenized assets such as tokenized Money Market Funds directly in their digital wallets. These developments underscore the growing role of tokenization in the fintech sector, as companies seek to innovate and improve user experiences.

The global market for tokenized real-world assets, according to RWA.xyz, is currently valued at $27 billion in distributed asset value. This represents an 8% increase over the last 30 days as more institutional capital enters on-chain treasury and commodity products. This growth has surpassed the USD Institutional Digital Liquidity Fund (BUIDL) from BlackRock, which currently has $2 billion in assets. This level of competition supports institutions’ bullish forecasts that this market could reach incredible heights in the coming years.

Analysts believe tokenized assets will play a crucial role in the future of finance, with the potential to transform traditional markets by making transactions faster, more efficient, and more accessible. As regulatory frameworks evolve and more firms enter the space, the tokenization sector is expected to continue its rapid growth, potentially reaching a valuation of $1.9 trillion by 2030 and $4 trillion by 2035.

The coming years will be critical for the tokenization sector as more institutions and fintech companies explore the potential of tokenized assets. The CLARITY Act is expected to provide further clarity on the regulatory landscape, which will be essential for the continued growth and development of the market.